Use General Ledger Allocations to distribute costs and revenue more efficiently

Enabled for Public preview General availability
Users, automatically Sep 1, 2023 Oct 2, 2023

Business value

To make data entry efficient and reduce errors for recurring types of posting, you can use allocations to predefine how to distribute revenue for transactions or cost amounts across G/L accounts and dimensions. You can use allocation keys on document and document lines, and in most journals

Feature details

You can use customized allocation keys to automate the distribution of revenue or cost transactions in journals, sales documents, or purchase documents. Allocation keys can trigger automatic G/L entry postings and allocations across different accounts and dimensions.

For example, allocation keys can automate postings related to payroll overhead. When posting total salary expenses at the end of the month, you can use automatic account codes to assign a percentage of the total salary to automatically post as overhead expenses. Or, you can use headcount per department to distribute the cost to the department-related dimension.

You can define your allocation keys based on:

  • Fixed amounts
  • Variable amounts (balance, net change)
  • Statistical accounts (non-financial quantities you track through the Statistical Accounts feature)

See also

Allocate revenue and costs to multiple general ledger accounts (docs)